tax policy Indicators

CONCORD PRAISES MEMBERS OF CONGRESS WILLING TO SEPARATE BALANCED BUDGET AND TAX CUTS

March 19, 1997

WASHINGTON -- The Concord Coalition today praised members of both parties
in Congress who have expressed support for separating the critical task of
balancing the budget from the politically-charged issue of tax cuts.

"As we have witnessed over the past two years, demanding that tax cuts be
included in a budget resolution is the surest way to kill any chance we
have of reaching a balanced budget," said Concord Co-Chair Warren Rudman.
"There will be plenty of time to discuss the feasibility of tax cuts after
the budget has been balanced. Our first obligation is to stop borrowing
from our children to finance today's consumption."

"Major tax cuts that take effect before the budget is balanced will only
make our long-term predicament that much worse," said Concord National
Policy Chair and former Rep. Tim Penny (D-Minn.). "Instead of a tax cut, we
should be concentrating on our most important, and difficult task --
putting our largest entitlement programs on a path that the nation can
afford in the coming decades."

"Insisting on tax cuts turns a balanced budget plan into a lose-lose deal,"
said Concord Executive Director Martha Phillips. "Tax cuts make it
necessary to cut spending far deeper than even most conservative
legislators are willing to defend. This would sink the deficit reduction
effort and make future efforts to lower taxes much less feasible and
affordable."

Phillips said special interest groups that are pushing legislators to
include a tax cut in the budget resolution should reconsider the long-term
impact of their effort on American families.

"The bottom line is that by insisting on a tax cut to help families in the
short run, special interest groups are jeopardizing families' chances of
enjoying the lower interest rates and increased economic growth that a
balanced budget plan would yield in the future," Phillips added. "A
balanced budget will yield a much greater fiscal dividend than a tax cut
over a longer period of time."

Phillips said the Coalition plans to mobilize its nationwide grassroots
network of volunteers during the Spring Congressional recess to encourage
more legislators to separate the two issues. The Concord Coalition has more
than 170,000 members nationwide, in nearly every Congressional district.